BUDA — After receiving feedback from the community, the city of Buda is increasing the reimbursement levels for two grant opportunities for businesses from 50/50 matching to 100%.
The Downtown Co-Marketing Reimbursement Grant was established by ordinance in 2020 to assist downtown businesses and planners hosting events in the Historic Downtown District to promote to an audience outside of Buda, according to agenda documents. Currently, a business or event located within the district approved for grant funding can be reimbursed for up to 50% of their marketing costs for eligible projects up to $3,000 — based on the matching percentage, a business needs to spend $6,000 to get the full $3,000 reimbursement.
The Arts Amplified Grant was established by ordinance in 2023 to assist artists, businesses and organizations hosting art events in Buda to promote their event to an audience outside of the city. Currently, a business or planner hosting an art event located within the Buda city limits approved for grant funding can be reimbursed for up to 50% of its marketing costs for eligible projects up to $3,000. Similar to the Downtown Co-Marketing Reimbursement Grant, based on the matching percentage, a business or planner needs to spend $6,000 to get the full $3,000 reimbursement.
Due to changing economic conditions, upcoming major construction projects in the Historic Downtown District and feedback stating the grant has a high barrier for entry, city staff requested that the ordinances and applications be amended to allow for 100% of applicants' marketing costs for eligible projects to be reimbursed up to $3,000.
Buda City Council approved in a 6-1 vote, with council member LaVonia Horne-Williams dissenting, the amendments to the Downtown Co-Marketing Reimbursement Grant and the Arts Amplified Reimbursement Grant at its Oct. 2 meeting. This changes the grant programs to be a 100% reimbursement, instead of a 50/50 matching.
“We did go back and seek feedback from people who we had offered the grant to that had both used it and not used it. That was for businesses and organizations,” explained Community Relations & Destination Services Director Lysa Gonzalez. “[We] asked them about their thoughts and feelings and the main feedback that we got was one, that they are very appreciative that they have this opportunity, but two, that the 50/50 rule for this matching grant was a barrier of entry for them to be able to utilize these funds to promote their businesses or the events that they are doing to try to bring people into our city.”
The 100% reimbursement would be a better way to get a wider range of businesses and organizations to be able to utilize the grant for the things they are doing, according to Gonzalez.
“We have many businesses within our downtown district and we do have a lot of events and art events that take place, but haven’t always been able to utilize the grant because they didn’t have all of the funding to be able to utilize the grant,” she said.
Changing the reimbursement level to 100% does not have a financial impact on the city of Buda, according to Gonzalez.
The Downtown Co-Marketing Reimbursement Grant has a budget of $20,000 and the Arts Amplified Grant has a budget of $10,000, according to Gonzales. Changing the reimbursement to 100% will not affect the budget amount to the city of Buda, the number of grants that can be given or the amount each business can receive, as the maximum reimbursement level will remain at $3,000 per partner, Gonzalez said. Both programs are funded through Hotel Occupancy Tax.
Following Gonzalez’s presentation on the ordinances, which were presented together, council member Horne-Williams questioned how the city will prevent businesses from applying for both grants for one event or purpose.
“Because both grants are handled by the same department, there would not be the opportunity to try to double-dip. We would catch that. We do not allow for double-dipping … A business or organization can use both grants, but it has to be for separate things,” Gonzalez explained. “The example would be if a business in downtown wants to promote themselves as a business, they can do that and go to the Downtown Co-Marketing Reimbursement Grant and promote themselves saying, ‘Come to our business in downtown Buda.’ But if they are having a band or some sort of live music thing that they are bringing into their venue and that they really wanted to showcase, they could then go to the Arts Amplified Grant and be able to use that to promote the art event that they are doing.”
Because the Downtown Co-Marketing Reimbursement Grant is strictly for businesses in the Historic Downtown District and the Arts Amplified Grant is city-wide, Horne-Williams questioned if there could be a policy put in place that does not allow for a business to receive both grants in the same fiscal year.
“Only downtown businesses would be allowed to have both. Other businesses outside of downtown couldn’t have both,” the council member stated.
Gonzalez responded that if council would like to have that policy or language written in, it could be added to the Downtown Co-Marketing Reimbursement Grant ordinance, stating that if a business received that grant funding, then it would not qualify for Arts Amplified Grant funding.
“I just want to make sure that there’s enough funding to go around for everyone who wants to participate in these programs, now that we are changing that rule where it’s no longer 50/50, now it’s a 100% match,” Horne-Williams said. “That opens things up for more businesses versus shrinking it by allowing downtown businesses to technically double-dip.”
Council member, Terry Cummings, asked what timeline restrictions there are for using the grants.
It’s $3,000 per business for the fiscal year, Gonzalez responded. For example, a business could use $1,000 for three separate events to spread out the total amount for multiple initiatives.
To learn more about the grants that the city of Buda offers, visit www. discoverbudatx.com/grants.
Buda City Council will meet next on Tuesday, Oct. 15.
